US Loses AAA Credit Rating After S&P Downgrade

[yubba]

Well he's the leader, and like any good captain he should go down with his ship, the USS Unsubstainable. We don't need to compromise with communist ideas, they don't work anywhere else in the world, and why would you think they would work here, we need to cut the wasteful spending, cut the regulations and let capitalism work, government needs to live within it's means just like the rest of us.

[Feuer Frei!]

Originally Posted by yubba

and like any good captain he should go down with his ship, the USS Unsubstainable.

[STEED]

You only got a slap from S&P, Moody's and fitch have left you on AAA.

[Platapus]

How about we wait and see what the effects of this one reporting change will make before getting upset?

S&P is only one source and they are not infallible. There is already controversy about their methodology being discussed on the news.

[Seth8530]

Of course their is controversy, i bet the white house is on full fledged damage control.. This could have awful effects down the road for all of us, Americans and non Americans alike.

The question is, who else is gona follow their lead?

[Armistead]

Only billions at first, we'll have to see where the other cuts come into play.

[yubba]

Originally Posted by Seth8530

Of course their is controversy, i bet the white house is on full fledged damage control.. This could have awful effects down the road for all of us, Americans and non Americans alike.

The question is, who else is gona follow their lead?

The gun shop next door has been busy all day, I like where I live It's location, location.

[vienna]

Well he's the leader, and like any good captain he should go down with his ship,...

Just like the valiant Captain George W., who when the ship was seriously taking on water, just waited for his relief and ran down the gangway, never looking back or acknowledgeing he should have done at least something to stop the leaks...

[yubba]

Originally Posted by vienna

Just like the valiant Captain George W., who when the ship was seriously taking on water, just waited for his relief and ran down the gangway, never looking back or acknowledgeing he should have done at least something to stop the leaks...

Just remember the last 2 years of Captain George W's tour, he had a democrat crew that did nothing about stopping the leaks, but were hell bent in making them worse, and Captain O had 2 years with his loyal crew of democrats, and what happen, they sank under his watch, you are a virtual sub driver, so tell me who's fault is it ??? the guy who left the ship or the one commanding it. The whole problem is no accountablity, not you, not me, and certainly not the one's we elect too represent us, we are so screwed.

[TorpX]

Originally Posted by Platapus

How about we wait and see what the effects of this one reporting change will make before getting upset?

S&P is only one source and they are not infallible. There is already controversy about their methodology being discussed on the news.

I think this was inevitable. Since the Fed refuses to cut spending, it was only a matter of time. What difference does the details of their methodology make? Year after year, the Gov't spends more and more (most of it unwisely), and refuses to change it's way of doing things. The deal Obama signed just sweeps the mess under the rug, so they can all start campaigning for re-election.

[mookiemookie]

Originally Posted by TorpX

I think this was inevitable. Since the Fed refuses to cut spending, it was only a matter of time. What difference does the details of their methodology make? Year after year, the Gov't spends more and more (most of it unwisely), and refuses to change it's way of doing things. The deal Obama signed just sweeps the mess under the rug, so they can all start campaigning for re-election.

The Federal Reserve doesn't control the nation's purse strings. Secondly, the methodology makes all the difference, because that's what the downgrade is based on. I find it curious that S&P arrived at a completely different set of numbers than Moody's or Fitch.

Also, why didn't they wait until the results of the debt reduction committee came in?

[Winston]

This in my opinion is a nice example of financial terrorism. Now that lending is more expensive I'll be interested to see how this will affect home owners, businesses and pensions in the U.S. Sadly I feel it will erode the middle class even more as more businesses go under unable to matian the there debts. More jobs off to China and more poor people in the US.
I fear this is the way some people might want it, goods manufactured in the developing economies while financial and banking 'industries' in the west. If you pay your workers less overseas then theoretically the population benefits from cheaper products.

However who will be left to buy these goods? Manufacturing and farming are down in the UK. 1.2% and I think *0.8% respectivly dispite the disapointing 0.2% Growth reported last fortnight. Hmm I guess the next quarter will be down to and for why? Are there any shortage of resorces? Perhaps a shortage of workers? Well no, nothing like that. Not yet anyway. So what does that leave as the culprit in the failing economies of the west. Globalization is not working and euro is falling apart as the wealth moves away from the developed economies and the smaller economies face the crunch first.

To be frank I don't think there is much anyone can realisticly do in the face of Globalization. Money and investment will move to the most efficient production environments, the developing world. Workers in developed nations will have to except lower pay and fewer rights in order to compete with that. Indeed 'tis the very definition of the word Economy, to produce goods at the lowest price.

In the past western countries would have the benefit of 'the invisible hand' keeping investment home but now with markets so internationalised... It's like investing in renewable energy while there is still coal and oil in the ground, we all know it would help toward energy independence but as long as there is more money in oil and coal we'll go on using it.

[Seth8530]

Originally Posted by Winston

This in my opinion is a nice example of financial terrorism. Now that lending is more expensive I'll be interested to see how this will affect home owners, businesses and pensions in the U.S. Sadly I feel it will erode the middle class even more as more businesses go under unable to matian the there debts. More jobs off to China and more poor people in the US.
I fear this is the way some people might want it, goods manufactured in the developing economies while financial and banking 'industries' in the west. If you pay your workers less overseas then theoretically the population benefits from cheaper products.

However who will be left to buy these goods? Manufacturing and farming are down in the UK. 1.2% and I think *0.8% respectivly dispite the disapointing 0.2% Growth reported last fortnight. Hmm I guess the next quarter will be down to and for why? Are there any shortage of resorces? Perhaps a shortage of workers? Well no, nothing like that. Not yet anyway. So what does that leave as the culprit in the failing economies of the west. Globalization is not working and euro is falling apart as the wealth moves away from the developed economies and the smaller economies face the crunch first.

To be frank I don't think there is much anyone can realisticly do in the face of Globalization. Money and investment will move to the most efficient production environments, the developing world. Workers in developed nations will have to except lower pay and fewer rights in order to compete with that. Indeed 'tis the very definition of the word Economy, to produce goods at the lowest price.

In the past western countries would have the benefit of 'the invisible hand' keeping investment home but now with markets so internationalised... It's like investing in renewable energy while there is still coal and oil in the ground, we all know it would help toward energy independence but as long as there is more money in oil and coal we'll go on using it.

Good post, So it seems that for the most part the market itself is capitalistic, to the extent that it will even get in bed with a socialistic economy and workforce just to do exactly what a capitalistic economy wants to do.

Crazy, but it does make sense... And better yet, the Irony couldnt be better.

[Armistead]

Originally Posted by mookiemookie

The Federal Reserve doesn't control the nation's purse strings. Secondly, the methodology makes all the difference, because that's what the downgrade is based on. I find it curious that S&P arrived at a completely different set of numbers than Moody's or Fitch.

Also, why didn't they wait until the results of the debt reduction committee came in?

I guess they waited to see if congress would get serious about spending cuts. In reality we're just cutting billions, not trillions. I highly doubt when it gets to tough cuts they will follow through.

[Subnuts]

Ah crap.

There goes our roadside assistance!